Refinance

While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.

Refinance apps made up more than 40% of all mortgage applications last week, driving an uptick as consumers seek out cheaper mortgage payments.

Mortgage applications rose 12.5% from last week, breaking a month-long streak of decline and offering a positive note as summer approaches.

Government-backed lending drove an increase in purchase mortgages for a second straight week, even as interest rates failed to drive refinance activity.

The latest refinance surge helped lift total application activity up for a second straight week, even as purchases fell, the Mortgage Bankers Association said.

Lenders increased offerings in jumbo and non-QM segments as the industry focuses on customers with strong credit, the Mortgage Bankers Association said.

Rejections for mortgage credit outpaced almost every other borrowing category, according to the Federal Reserve Bank of New York.

Both purchases and refinances came in higher, with government-backed lending providing momentum, the Mortgage Bankers Association said.

New Mexico is the state least wanting to refinance, with 369.38 keyword searches per 100,000 people.